Author(s): CHEN Jin, ZHANG Yue
Pages: 58-63
Year: 2016 Issue:  1
Journal: Journal of Hubei University of Economics
Keyword:  internal control audit reports; characteristics of ultimate controller; the cost of equity capital; signal transmis-sion theory;
Abstract: In this paper, 2011-2012 A-share listed companies in the sample, using the PEG model to test whether the cost of equity capital will be subject to corporate disclosure of the impact of the internal control reporting. Studies have shown that the cost of equity capital disclosure of internal control self-assessment report of the enterprise is not significantly reduced, but when the company disclosed the internal control audit report can serve as a positive signal, can significantly re-duce the cost of equity capital. Meanwhile, the actual control of nature to a certain extent also affected the assessment of corporate financial reporting quality and operational risks investors, provide a guarantee for the quality of internal control dis-closure of information, but also to reduce the cost of equity capital.